Dreadnought Capital is working in partnership with the Nairobi Securities Exchange in developing a full spectrum derivatives exchange in Kenya.  In close collaboration with the Kenyan regulators and government, Dreadnought Capital was instrumental in the passing of the Financial Act 2013, allowing the formation of a new derivatives exchange.

Securities Trading and Technology (STT) has the contract to supply the Nairobi Securities Exchange (NSE) with derivatives and bond software.  STT has subcontracted Dreadnought Capital to supply all facets surrounding the establishment of new markets.  All technical installations plus regulations training and implementation have been completed.

The regulation amendments are being implemented and the NSE Derivatives Exchange is expected to go live in the second half of 2014

Dreadnought Capital, with STT and Computershare, is building a truly African Trade Repository solution to comply with international OTC regulation requirements and provide the South African and African market with a seamless world-class product offering.   

The Trade Repository is being created as a direct result of the global financial crises of 2008, reflecting the fundamental regulatory changes in the derivatives landscape.  The OTC derivative market is generally considered to be far larger in value and volume than the exchange traded market, but given its opaque nature, the exact size is difficult to estimate.   It was the opaqueness that complicated international regulator’s responses to the global financial crisis, as the extent of the contagion from the OTC contracts between banks was not known.    It was these OTC instruments that gave derivatives a bad name and were widely blamed for exacerbating the global financial crisis.  The fallout from the crisis, and the inability to take effective corrective action was the catalyst to G20 regulators proposing new, far reaching measures to regulate and monitor OTC contracts on a global scale.